Regulation EC 723 (MA, Ph.D.)

Wednesday 4:30-7:10pm, Archer 462A

Final Exam December 10th 5:40pm-7:10pm

 

 

Dr. Benjamin Powell

Department of Economics

1 Bowdoin Sq. (6th Floor)

bpowell@suffolk.edu (best way to reach me)

617-573-8023

http://mail.beaconhill.org/~bpowell/

Office Hours: Tuesday and Wednesday 2-3:30pm and by appointment

 

This course will introduce students to economic theories of regulation.  We will explore theories of market failure and the rationale for regulation.  We will explore how regulators function in differing institutional environments.  With this analytic toolkit we will then study various topical areas of regulation including: Monopoly and Antitrust, Environmental, Health, Safety, Financial Market, Housing, and Vice.

 

Expectations:  You are expected to read each week’s assigned readings BEFORE coming to class and to be prepared to discuss them.  Readings will come from the books, professional journal articles, and policy studies.  Graduate school is about transforming from a consumer of economics to a producer of new economic knowledge.  Unless you engage and digest the readings on your own before class you will have difficulty making the transition. 

 

Books:

 

Kip Viscusi, Joseph Harrington, and John Vernon.  Economics of Regulation and

Antitrust 4th ed.   MIT Press. 2005.

 

Dominick Armentano. Antitrust and Monopoly.  Independent Institute.  1996.

 

Jim Leitzel, Regulating Vice.  Cambridge University Press. 2007.

 

William Mitchell and Randy Simmons.  Beyond Politics.  Westview. 1994.

 

 

Grading:

            Final Exam                               30%

            Midterm Exam              20%

            Term Paper                              30%

            Quizzes/Participation                 20%

 

 

 

Tentative Schedule

 

Sept. 3                  Intro & Market Failure                   

Viscusi et al Chapters 1 & 2

Mitchell & Simmons Chapter 1

 

Sept. 10                The Economics of Politics

Mitchell & Simmons Chapters 2, 3, 4, & 6.                     

 

Sept. 17                The Economic Theory of Regulation

Viscusi et al. Chapter 10. 

Stigler, G. (1971) “The Theory of Economic Regulation.”  The Bell Journal of Economics and

Management Science.  Vol. 2 (1): 3-21.

Peltzman, S. (1976) “Toward a More General Theory of Regulation.”  Journal of Law and

Economics.  Vol. 19(2): 211-240.

Becker, G. (1983) “A Theory of Competition Among Pressure Groups for Political Influence.” 

Quarterly Journal of Economics.  Vol. 98(3): 371-400.

Peltzman, S. (1993) “George Stigler’s Contribution to the Economic Analysis of Regulation.” 

Journal of Political Economy.  Vol. 101(5): 818-832.

Glaeser, E. and Shleifer, A. (2003) “The Rise of the Regulatory State.”  Journal of Economic

Literature 41: 402-425.

Benson, B. (2004) “Opportunities Forgone: The Unmeasurable Costs of Regulation.”  Journal of

Private Enterprise 19: 1-25.

McChesney, F. (1987) “Rent Extraction and Rent Creation in the Economic Theory of

Regulation.”  Journal of Legal Studies 16: 101-118.

Yandle, B. (1983) “Bootleggers and Baptists – The Education of a Regulatory Economist.” 

Regulation.  Vol. 7(3): 12-16.

 

Sept. 24                Health and Safety

Viscusi et al Chapter 19, 22, & 23.

Peltzman, S. (1975) “The Effects of Automobile Safety Regulation.  Journal of Political

Economy 83(4): 677-726.

Alamar, B. and Glantz, S. (2004) “Smoke-Free Ordinances Increase Restaurant Profit and Value. 

Contemporary Economic Policy 22(4): 520-525.

Henderson, David (2007) “Smoking in Restaurants: Who Best to Set the House Rules?”  Econ

Journal Watch 4(3): 284-291.

 

Oct. 1                             Environmental   

Viscusi et al Chapter 21.

Center for Climate Strategies ( http://www.climatestrategies.us/ ) we will study an individual state report.  State TBA. 

Yandle, B. (1998) “Bootleggers, Baptists, and Global Warming.”  PERC Policy Series 14:

http://www.perc.org/articles/article193.php

 

Oct. 8                             Housing

Holcombe, R. and Powell B. (eds.) (2009) Housing America: Building Out of a Crisis. 

Transaction.  Electronic version to be distributed.

 

Oct. 15                 Financial Market Regulation

Securities and Exchange Commission (2004) “How the SEC Protects Investors and Maintains

Market Integrity.”  Washington, DC.  http://www.sec.gov/about/whatwedo.shtml

Stringham, Edward (2003) “The Extralegal Development of Securities Trading in Seventeenth

Centruy Amsterdam.”  Quarterly Review of Economics and Finance 43(2): 321-344.

Glaeser, E. Johnson, S. and Shleifer, A. (2001) “Coase versus the coasians.”  Quarterly Journal

of Economics 116:853-899.

Boettke, P. Clark, J. and Stringham, S. (forthcoming) “Are Regulations the Answer for Emerging

Stock Markets?  Evidence from the Czech Republic and Poland.”  Quarterly Review of Economics and Finance.

 

Oct. 22                 Vice

Leitzel, Intro, Chapters 1, 2, 3, 6 & 7. 

 

Oct. 29                 Drugs and Alcohol

Leitzel, Chapters 4, 5, 8. 

Thornton, M. “The Repeal of Prohibition.”  In The Economics of Prohibition.  Will hand out hard

copy in class.

                                                                                               

Nov. 5                   Midterm

 

Nov. 7                   Monopoly & Antitrust

Viscusi et al. Chapters 3 & 4.

Armentano Chapters 1 & 2.

Kovacic, W. and Shapiro, C. (2000) “Anitrust Policy: A Century of Economic and Legal

Thinking.”  Journal of Economic Perspectives 15: 43-60.

 

Nov. 12                 Historical Application of Antitrust Law

Armentano Chatpers 3 & 4.

DiLorenzo, T. (1985) “Origins of Antitrust: An Interest Group Perspective.”  International

Review of Law and Economics 5: 73-90.

 

Nov. 19                 Mergers                               

Viscusi et al. Chapters 6, 7, & 8

Armentano Chapter 8.                                      

 

Dec. 3                   Price Discrimination and Tying

Viscusi et al. Chapter 9

Armentano Chapters 6, 7, & 9.   

 

 

FINAL EXAM December 10th 5:40pm-7:10pm